If you’re young, healthy, and don’t often use your health insurance, a catastrophic plan could offer basic, affordable health insurance.
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Signing up for a catastrophic health plan with a high deductible and a limited number of essential benefits can help you reduce your premiums. Your coverage will be severely limited compared to a plan that conforms to ACA standards. Catastrophic plans may be a good choice if you’re a young, healthy adult with minimal health care use. This type of plan can also make sense for basic coverage if you’re between jobs or enrollment periods.
Read on to learn more about available catastrophic insurance plans.
Health insurance company | Financial Strength Rating | Customer Satisfaction Rating | Value Rating | Coverage Rating | Overall Rating |
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Aetna: Best for students | 5 | 4.75 | 4.75 | 4.75 | 4.81 |
Anthem: Best value | 5 | 3.25 | 4 | 4.5 | 4.19 |
Blue Cross Blue Shield: Best for nationwide coverage | 5 | 4.5 | 4.5 | 4.5 | 4.63 |
Cigna: Best for no-charge services | 4.5 | 4.13 | 4 | 4 | 4.16 |
Highmark: Best for quality | 4.5 | 4 | 4 | 4 | 4.13 |
Humana: Best for older adults | 4 | 4.5 | 4.5 | 4.5 | 4.38 |
Kaiser Permanente: Best for customer service | 5 | 4.5 | 4.75 | 4 | 4.56 |
Molina Healthcare: Best for coverage options | 5 | 2 | 3 | 4 | 3.5 |
UnitedHealthcare: Best for financial strength | 4 | 4.75 | 4.75 | 4.75 | 4.56 |
Wellcare: Best for prescription drug coverage | 3.5 | 4 | 4.25 | 4.5 | 4.06 |
Catastrophic health insurance offers basic health care coverage in exchange for a lower monthly premium than traditional health insurance. But with these savings come limitations. You must meet qualification requirements to apply for catastrophic coverage and coverage is lower than most other plans.
Eligibility for a catastrophic plan is limited to:
Monthly premiums for catastrophic plans are usually lower than other health care plans. You can’t use a premium tax credit on a catastrophic plan. The credit on a marketplace bronze or silver plan may lower your monthly premium cost to a better price than a catastrophic plan.
Catastrophic plan coverage is limited to essential health benefits, which include preventive care, hospital and emergency services, maternity, mental health, prescription drugs, and labs:
Although catastrophic health plans must comply with the ACA, the plans aren’t eligible for tax credits. You’ll have to pay the full cost and may spend more than you would with a bronze or silver plan with a tax credit.
Company founded | 1853 |
Coverage area | All |
A.M. Best rating | A+ |
BBB rating | A+ |
NCQA accreditation | Yes |
NCQA rating | 4.5 to 2.5 |
Provider network | More than 700,000 primary care providers and specialists |
Founded in 1853, Aetna is one of the country’s oldest and most successful insurance companies. Today, it’s owned by the CVS Health Corporation and insures more than 39 million Americans, 22 million of whom are medical members. Aetna’s provider network includes more than 5,700 hospitals, 700,000 physicians, and 1.2 million health care professionals.
What we like about Aetna catastrophic insurance plans: | The drawbacks of Aetna catastrophic insurance plans: |
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Trusted ratings and reviews can help you understand how an insurer’s plans stack up against the competition. See how we rated Aetna.
Financial strength rating: 5 |
Customer satisfaction rating: 4.75 |
Value rating: 4.75 |
Coverage rating: 4.75 |
Company founded | 2004 |
Coverage area | All |
A.M. Best rating | A+ |
BBB rating | F |
NCQA accreditation | Yes |
NCQA rating | 4.5 to 2.5 |
Provider network | Large |
Anthem, formerly known as WellPoint, is one of the largest for-profit distributors of branded insurance plans administered by the Blue Cross Blue Shield Association. It ensures approximately 40 million members across the country. Blue-branded policies are available in 14 states, from California to New England. In addition to offering Medicare, Medicaid, and employer-sponsored benefits, Anthem sells short-term health insurance and catastrophic Marketplace plans in select states.
What we like about Anthem catastrophic insurance plans: | The drawbacks of Anthem catastrophic insurance plans: |
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Trusted ratings and reviews can help you understand how an insurer’s plans stack up against the competition. See how we rated Anthem.
Financial strength rating: 5 |
Customer satisfaction rating: 3.25 |
Value rating: 4 |
Coverage rating: 4.5 |
Company founded | 1929 |
Coverage area | All |
A.M. Best rating | A+ |
BBB rating | A+ |
NCQA accreditation | Yes |
NCQA rating | 4 to 3 |
Provider network | Large |
Blue Cross Blue Shield Association provides health, life, disability insurance, and dental benefits to millions of members. The company has earned the highest rating in A.M. Best for its financial strength. Keep reading to find out more about Blue Cross Blue Shield’s extensive selection of health insurance plans for individuals and families, including catastrophic coverage.
What we like about Blue Cross Blue Shield catastrophic insurance plans: | The drawbacks of Blue Cross Blue Shield catastrophic insurance plans: |
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Trusted ratings and reviews can help you understand how an insurer’s plans stack up against the competition. See how we rated Blue Cross Blue Shield.
Financial strength rating: 5 |
Customer satisfaction rating: 4.5 |
Value rating: 4.5 |
Coverage rating: 4.5 |
Company founded | 1981 |
Coverage area | Arizona, Colorado, Florida, Illinois, Kansas, Missouri, North Carolina, Tennessee, Utah, and Virginia |
A.M. Best rating | A |
BBB rating | A- |
NCQA accreditation | Yes |
NCQA rating | 4 to 2.5 |
Provider network | Large |
Cigna is a global health service company with more than 17 million insured individuals worldwide and more than 200 years of industry experience. Individual and family plans, including catastrophic health insurance, are available in 10 states. Cigna has excellent ratings for financial stability.
What we like about Cigna catastrophic insurance plans: | The drawbacks of Cigna catastrophic insurance plans: |
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Trusted ratings and reviews can help you understand how an insurer’s plans stack up against the competition. See how we rated Cigna.
Financial strength rating: 5 |
Customer satisfaction rating: 4.5 |
Value rating: 4.5 |
Coverage rating: 4.5 |
Company founded | 1996 |
Coverage area | Pennsylvania, Delaware, and West Virginia |
A.M. Best rating | A |
BBB rating | A- |
NCQA accreditation | Yes |
NCQA rating | 4 to 3.5 |
Provider network | Large |
Highmark is a diverse health organization offering individual and family insurance plans and reinsurance, and health care technology.
What we like about Highmark catastrophic insurance plans: | The drawbacks of Highmark catastrophic insurance plans: |
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Trusted ratings and reviews can help you understand how an insurer’s plans stack up against the competition. See how we rated Highmark.
Financial strength rating: 4.5 |
Customer satisfaction rating: 4 |
Value rating: 4 |
Coverage rating: 4 |
Company founded | 1961 |
Coverage area | All |
A.M. Best rating | A- |
BBB rating | A+ |
NCQA accreditation | Yes |
NCQA rating | 4 to 2.5 |
Provider network | Large |
Humana is a long-standing health insurance company that was once one of the largest hospital and nursing home operators in the United States. Today, it provides health insurance to 17 million Americans and more than 5 million customers have purchased its specialty insurance products. Seniors who want catastrophic coverage can consider purchasing a high-deductible version of Medigap Plan G.
What we like about Humana catastrophic insurance plans: | The drawbacks of Humana Health insurance plans: |
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Financial strength rating: 4.5 |
Customer satisfaction rating: 3 |
Value rating: 4 |
Coverage rating: 5 |
Company founded | 1945 |
Coverage area |
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A.M. Best rating | A+ |
BBB rating | A |
NCQA accreditation | Yes |
NCQA rating | 5 to 4 |
Provider network | More than 22,000 Permanente Medical Group physicians and clinicians |
What we like about Kaiser Permanente catastrophic insurance plans: | The drawbacks of Kaiser Permanente catastrophic insurance plans: |
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Trusted ratings and reviews can help you understand how an insurer’s plans stack up against the competition. See how we rated Kaiser Permanente.
Financial strength rating: 5 |
Customer satisfaction rating: 4.5 |
Value rating: 4.75 |
Coverage rating: 4 |
Company founded | 1980 |
Coverage area | California, Florida, Illinois, Michigan, Mississippi, Ohio, New Mexico, New York, South Carolina, Texas, Utah, Washington, and Wisconsin |
A.M. Best rating | A+ |
BBB rating | F |
NCQA accreditation | Yes |
NCQA rating | N/A |
Provider network | Large |
Molina Healthcare is a Fortune 500 company that provides health insurance to 4.6 million members with marketplace plans in 13 states. Molina Healthcare’s catastrophic marketplace plans typically include basic medical services and access to an HMO network, which means that out-of-network care is subject to 100% coinsurance even after the deductible is paid.
What we like about Molina catastrophic insurance plans: | The drawbacks of Molina catastrophic insurance plans: |
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Trusted ratings and reviews can help you understand how an insurer’s plans stack up against the competition. See how we rated Molina Healthcare.
Financial strength rating: 5 |
Customer satisfaction rating: 2 |
Value rating: 3 |
Coverage rating: 4 |
Company founded | 1977 |
Coverage area | All except New York |
A.M. Best rating | A- |
BBB rating | A+ |
NCQA accreditation | Yes |
NCQA rating | 4.5 to 2.5 |
Provider network | 1.3 million physicians and care professionals
6,500 hospitals and care facilities nationwide |
UnitedHealthcare is a diversified insurance company that provides coverage to individuals and families. Members have access to a comprehensive service network that includes 1.3 million medical providers and 6,500 hospitals and licensed health care facilities. The company offers catastrophic marketplace plans that meet ACA requirements.
What we like about UnitedHealthcare catastrophic insurance plans: | The drawbacks of UnitedHealthcare catastrophic insurance plans: |
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Trusted ratings and reviews can help you understand how an insurer’s plans stack up against the competition. See how we rated UnitedHealthcare.
Financial strength rating: 4 |
Customer satisfaction rating: 2 |
Value rating: 3 |
Coverage rating: 4 |
Company founded | 1985 |
Coverage area | All |
A.M. Best rating | B |
BBB rating | A+ |
NCQA accreditation | Yes |
NCQA rating | 3 |
Provider network | Large |
WellCare is part of Centene, a global health care leader that serves more than 25 million managed care members. It offers government-sponsored health care benefits in all 50 states. WellCare’s Part D prescription drug policies include catastrophic coverage that limits copays or coinsurance rates once Medicare beneficiaries hit an annual spending threshold.
What we like about WellCare catastrophic insurance plans: | The drawbacks of WellCare catastrophic insurance plans: |
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Trusted ratings and reviews can help you understand how an insurer’s plans stack up against the competition. See how we rated WellCare.
Financial strength rating: 4 |
Customer satisfaction rating: 2 |
Value rating: 3 |
Coverage rating: 4 |
There are numerous options to find affordable catastrophic health insurance plans depending on your needs and location. Here are a few ways to get started:
Tammy Burns is an experienced health insurance advisor. She earned her nursing degree in 1990 from Jacksonville State University, obtained her insurance billing and coding certification in 1995, and holds a health and life insurance license in Alabama, Georgia, Iowa, Mississippi, and Tennessee. Burns is Affordable Care Act (ACA)-certified for health insurance and other ancillary, life, and annuity products. She maintains an active nursing license and practices private-duty nursing.
Burns’ background as a nurse, insurance biller and coder, and insurance consultant includes infectious disease, oncology, gynecology, phlebotomy, post operative, family medicine, geriatrics, home health, hospice, human resources, management, billing, coding, claims, fixed annuities, group and individual health and life products, and Medicare. She’s always been driven by a desire to help people, spending more than 25 years as a practicing nurse in hospitals, private doctors’ offices, home health, and hospice. As a nurse, Burns supported patients filing insurance claims with Medicare, Medicaid, and private insurance companies as well as responding to billing questions from confused patients.
Seeing firsthand how unsuspecting patients are frequently confused by an overly complex system they don’t understand led Burns to become an insurance agent and health care consultant, now helping people understand the medical system. Since becoming an insurance agent in 2013, she has worked with some of the largest and most reputable insurance carriers and agencies in the nation, and she has built a large and loyal clientele by way of her commitment to transparency and personalized service.
Tammy Burns is an experienced health insurance advisor. She earned her nursing degree in 1990 from Jacksonville State University, obtained her insurance billing and coding certification in 1995, and holds a health and life insurance license in Alabama, Georgia, Iowa, Mississippi, and Tennessee. Burns is Affordable Care Act (ACA)-certified for health insurance and other ancillary, life, and annuity products. She maintains an active nursing license and practices private-duty nursing.
Burns’ background as a nurse, insurance biller and coder, and insurance consultant includes infectious disease, oncology, gynecology, phlebotomy, post operative, family medicine, geriatrics, home health, hospice, human resources, management, billing, coding, claims, fixed annuities, group and individual health and life products, and Medicare. She’s always been driven by a desire to help people, spending more than 25 years as a practicing nurse in hospitals, private doctors’ offices, home health, and hospice. As a nurse, Burns supported patients filing insurance claims with Medicare, Medicaid, and private insurance companies as well as responding to billing questions from confused patients.
Seeing firsthand how unsuspecting patients are frequently confused by an overly complex system they don’t understand led Burns to become an insurance agent and health care consultant, now helping people understand the medical system. Since becoming an insurance agent in 2013, she has worked with some of the largest and most reputable insurance carriers and agencies in the nation, and she has built a large and loyal clientele by way of her commitment to transparency and personalized service.